This module allows you to analyze existing cross correlation between DOW and AMC Entertainment Holdings Inc. You can compare the effects of market volatilities on DOW and AMC Entertainment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DOW with a short position of AMC Entertainment. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and AMC Entertainment.

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.31 times more return on investment than AMC Entertainment. However, DOW is 3.18 times less risky than AMC Entertainment. It trades about 0.0 of its potential returns per unit of risk. AMC Entertainment Holdings Inc is currently generating about -0.02 per unit of risk. If you would invest 2,496,475 in DOW on February 17, 2018 and sell it today you would lose (1,824) from holding DOW or give up 0.07% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between DOW and AMC Entertainment

0.3

Parameters

Diversification

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and AMC Entertainment Holdings Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AMC Entertainment Ho and DOW is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DOW are associated (or correlated) with AMC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Entertainment Ho has no effect on the direction of DOW i.e. DOW and AMC Entertainment go up and down completely randomly.